Types of Taxes

By: Ryan Tezzi

Types of Taxes

By: Ryan Tezzi

The 5 Types of Taxes

Income Tax- Income tax is payed to the federal, state, and local governments. This tax is used for many common things like building roads or schools.

Payroll Tax- Payroll tax is taken out of your salary and paid to the federal government. Payroll tax pays for stuff like social security and medicare for when you are older.

Property Tax- Property tax is payed to the local or state government and sometimes multiple jurisdictions can tax you for the same property. Property tax is on things like your car, your home, your land you own, and other things such as boats.

Sales Tax- Sales tax is on every retail item that you buy and goes to the local or state government. The price of sales tax depends on what you buy, the most it costs the high the sales tax on it.

Excise Tax- Excise tax is payed to the state or federal government for non-essential consumer goods. Like environment tax, communication tax, and even fuel/gasoline tax.